Puerto Rico and Greece’s financial turmoil might seem distant, but many American states are now confronting substantial financial deficits due to pension obligations. Most states in America are wrestling with how to fund between $1 trillion to $4 trillion in unpaid pension and health care liabilities, as stated by experts.
The difference in this unfunded liability can be attributed to factors like the expected return rate on pension investments and fluctuations in economic projections. Even at a ‘mere’ one trillion, that figure is still considerably large.
A recent report by the Pew Charitable Trust projected that the country’s state-administered pension systems face almost a one trillion dollar deficit. At least 27 states are dealing with at minimum, a $10 billion gap.
For more details, visit CBS Money Watch.
Photo credit: Julim6 from SmartAsset.com.
